Why should you be interested in offshore investments?
Every good Jerusalemite knows the derogatory term “ghost apartments.” Apartments purchased by wealthy people from abroad and that serve mainly for family vacationers, so that for many months the apartments remain abandoned without kindergartens opening in those neighborhoods, and without allowing the country’s residents to enjoy those impressive locations.
This situation is meeting us again today, after a long nap. So who is interested in this, what refreshing change has occurred in the field, what is behind those purchases, which locations are more sought after and where does this meet us, the Blue and White investor group? We went to make arrangements!
Vacation apartments alongside Blue and White real estate investments
First, let’s stop to straighten things out. These are mainly wealthy Jews living in exile and seeking to set up base in the State of Israel. For some, it is a Zionist base of consciousness that provides a sense of security, and for some, it is just a family vacation base alongside economic considerations, but none of this matters to the test of the outcome.
Transatlantic real estate transactions are closed through visits and even quite a few through Zoom calls. Everything works, as indicated by dozens of sales of luxury properties, mainly in the capital city of Jerusalem and the secular capital of Tel Aviv. However, there are other destinations that are attracting great interest, so that alongside Tel Aviv and Jerusalem, there are also quite a few purchases in Netanya and Herzliya Pituach, while interest is also felt in Ashkelon, mainly for investment (rental).
Additional support for rising prices
The interest is mainly coming from the US, but also from the UK and of course from France. How does all this affect domestic demand? Well, some would say it is only doing it good, although it depends on who you ask. Yes, we can say that domestic prices are soaring, so in fact this is another layer that explains the unstoppable trend of rising prices. Hence, if we examine what experts in the field are saying, we find that they do not expect a moderate decline in the coming years, so if demand overseas also continues to pick up speed, we can be sure that the prices of a variety of luxury properties will continue to rise upwards.
The coronavirus slowed down but did not stop
It is interesting to pause to examine how the coronavirus contributed to the overall picture. Well, over the past two years, the trend has calmed down a bit, mainly because it was difficult to get to Israel to examine properties. On the other hand, many who were abroad wanted to find an anchor for themselves, and therefore, during the coronavirus period, they wanted to make sure that they had a property in Israel. If we add to all this the fact that anti-Semitism has also increased worldwide, then we can begin to understand why, with and without the coronavirus, the demand for properties in Israel has increased.
Current Situation
Today, after the skies are open again, the volume of transactions is only increasing. Here it is interesting to point out an interesting fact. If in the not-so-distant past, apartments were sold to Jews living abroad mainly for vacation purposes, today many apartments are purchased for residential purposes. Hence, if in the past, mainly 3-room apartments were purchased, today there is much more demand for 5-room apartments.
Also, a significant portion is not looking for vacation apartments or even an apartment for residential purposes, but is simply looking for an investment, with the aim of renting the property and enjoying a nice return. However, here too, not everyone is looking for a net profitable investment, but among other things, the Zionist value is important – a contribution to building the state, so many investors from abroad are mainly interested in apartments located in the north and south of the country.
If we approach characterizing the Jewish public that makes Blue and White purchases overseas, we find that some are religious Orthodox, but there are also quite a few secular ones. So what is the common denominator among investors? Well, the coronavirus taught that there is no real substitute for the Jewish state, which has proven itself in steadfastly confronting the pandemic, and at the same time, anti-Semitism taught that there is no safe place like home.
How does the sabbatical investor benefit from the situation?
Hence, if we summarize, we note that after 2021 was defined as an amazing year for real estate investments, it only remains to examine how the Jewish investor from abroad also enters the equation, helping to push the price increase upwards. Hence, it only remains to examine how the opportunity is taken advantage of. Whether through the purchase and improvement of properties, or through investment in properties that allow long-term rental for the benefit of those Jews who wish to examine the feasibility of making an immigra- tion.
Finally, we will clarify that many investors from abroad are not necessarily looking for luxury apartments, but simply want to purchase an apartment in preparation for immigration. Therefore, a distinction must be made between luxury transactions and moderate transactions. Here, the figure of immigration to Israel must be added to the local real estate equation, and accordingly, how the findings affect the total investment at stake, taking into account that some prefer to live next to ghost apartments, and some avoid them because they are looking for an active community life. Conclusion Before making an investment? It is important to carefully examine the overall picture and know how to leverage opportunities.
Personal area 
*5401